The financial position of Sea Island is starting to emerge and the resort may have to be sold. A major investment house predicts it's probable that the place will be sold in pieces for no more than 50 cents on the dollar.

Two of the company's golf courses - Frederica and Ocean Forest - have been taken over and the debt load remains large as a result of massive spending to renovate lodging and golf facilities in recent years. The company has announced that it will hire an investment bank to review its "strategic options," a term that likely indicates a sale.

Caught up in this is the Synovus Financial Corporation, which has banks in this area. Bank execs and Sea Island Chairman and CEO Bill Jones III had a close relationship including serving on each other's board, and the bank reportedly is in the tank for over $250 million in loans.

Angered members in the Atlanta area held a tense meeting with Jones recently, wanting to know how-in-heck a bank owns the Ocean Forest course that they live on.

They got few reasons but you can guess: business is lousy in this economic climate and it hasn't been helped by too-high room and golf rates. Sea Island always has been expensive, but rates used to be low enough for a splurge. When the "new" Cloisters hotel opened, rooms were in the $800 range.

Business goes on at the resort and plans are well underway for its first-ever PGA Tour event this fall, though it's unknown what the resort's financial contribution will be.

* * *

Where are all these all-but-unknown sponsors coming from for the Tour? Have you ever heard of McGladrey or Farmers Insurance? Probably not, but they've been around and are very successful in their niches, and it's probable that saw a great opportunity to get publicity when Tour events became available at a much discounted price.

* * *

Looks like the PGA Merchandise Show in Orlando was a success despite the economy.

* * *

Qualifying for the World Golf Hall of Fame's annual putting tournament will be April 17-18 and 24-25. The eight lowest qualifying scores from each weekend will advance to the finals on May 1. They have $10,000 worth of prizes and the putting course's slick greens are a challenge.

* * *

The WGV will get some nice exposure this year. The Golf Writers Association of America will have its annual championship there.

The GWAA is looking for a permanent home for its event, which was a big deal when it was in Myrtle Beach but since has struggled as it has been moved around (Myrtle Beach lost interest some years back.)

* * *

One more WGV note: they'll have a Super Bowl viewing party in the IMAX theatre and $30 gets you plenty to eat and drink.



- Fred Seely is editor of Golf News.